BILL NUMBER: SB 1417	CHAPTERED  09/12/00

	CHAPTER   417
	FILED WITH SECRETARY OF STATE   SEPTEMBER 12, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 11, 2000
	PASSED THE SENATE   AUGUST 18, 2000
	PASSED THE ASSEMBLY   AUGUST 10, 2000
	AMENDED IN ASSEMBLY   JUNE 12, 2000
	AMENDED IN SENATE   APRIL 10, 2000
	AMENDED IN SENATE   MARCH 15, 2000

INTRODUCED BY   Senator Wright

                        FEBRUARY 2, 2000

   An act to amend Section 69.5 of the Revenue and Taxation Code,
relating to taxation.


	LEGISLATIVE COUNSEL'S DIGEST


   SB 1417, C. Wright.  Property taxation:  transfer of base year
value.
   Existing property tax law permits persons over 55 years of age and
persons who are severely and permanently disabled, as specified, to
transfer the property tax base year value of their home to a
replacement home in the same county, and, under certain
circumstances, authorizes the transfer of the base year value to a
replacement home in a different county.  Existing property tax law
allows a claimant to rescind a claim for a transfer of base year
value upon delivery of a written notice of rescission to the assessor'
s office if certain conditions are met, including the filing of a
written notice of rescission by the applicable of certain deadlines.

   This bill would eliminate certain deadline requirements for the
filing of a rescission notice in the case in which the replacement
property has been vacated as the claimant's principal place of
residence within 90 days after the original claim was filed.  This
bill would, in that case, require the assessor to rescind the claim
upon the filing of the rescission notice, and would also require the
assessor to impose escape assessments or supplemental assessments if
the rescission increases the base year value of the property, or the
homeowners' exemption has been incorrectly allowed.  By requiring
county assessors to process additional claim rescissions made
pursuant to new eligibility standards, this bill would impose a
state-mandated local program.
   This bill would also revise the applicable dates for which a
county board of supervisors may allow the transfer of the base year
value of a home to a replacement home in a different county.
  The California Constitution requires the state to reimburse local
agencies and school districts for certain costs mandated by the
state.  Statutory provisions establish procedures for making that
reimbursement.
   This bill would provide that no reimbursement is required by this
act for a specified reason.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 69.5 of the Revenue and Taxation Code is
amended to read:
   69.5.  (a) (1) Notwithstanding any other provision of law,
pursuant to subdivision (a) of Section 2 of Article XIIIA of the
California Constitution, any person over the age of 55 years, or any
severely and permanently disabled person, who resides in property
that is eligible for the homeowner's exemption under subdivision (k)
of Section 3 of Article XIII of the California Constitution and
Section 218 may transfer, subject to the conditions and limitations
provided in this section, the base year value of that property to any
replacement dwelling of equal or lesser value that is located within
the same county and is purchased or newly constructed by that person
as his or her principal residence within two years of the sale by
that person of the original property, provided that the base year
value of the original property shall not be transferred to the
replacement dwelling until the original property is sold.
   (2) Notwithstanding the limitation in paragraph (1) requiring that
the original property and the replacement dwelling be located in the
same county, this limitation shall not apply in any county in which
the county board of supervisors, after consultation with local
affected agencies within the boundaries of the county, adopts an
ordinance making the provisions of paragraph (1) also applicable to
situations in which replacement dwellings are located in that county
and the original properties are located in another county within this
state.  The authorization contained in this paragraph shall be
applicable in a county only if the ordinance adopted by the board of
supervisors complies with all of the following requirements:
   (A) It is adopted only after consultation between the board of
supervisors and all other local affected agencies within the county's
boundaries.
   (B) It requires that all claims for transfers of base year value
from original property located in another county be granted if the
claims meet the applicable requirements of both subdivision (a) of
Section 2 of Article XIIIA of the California Constitution and this
section.
   (C) It requires that all base year valuations of original property
located in another county and determined by its assessor be accepted
in connection with the granting of claims for transfers of base year
value.
   (D) It provides that its provisions are operative for a period of
not less than five years.
   (E) The ordinance specifies the date on and after which its
provisions shall be applicable.  However, the date specified shall
not be earlier than November 9, 1988.  The specified applicable date
may be a date earlier than the date the county adopts the ordinance.

   (b) In addition to meeting the requirements of subdivision (a),
any person claiming the property tax relief provided by this section
shall be eligible for that relief only if the following conditions
are met:
   (1) The claimant is an owner and a resident of the original
property either at the time of its sale or within two years of the
purchase or new construction of the replacement dwelling.
   (2) The original property is eligible for the homeowner's
exemption, as the result of the claimant's ownership and occupation
of the property as his or her principal residence, either at the time
of its sale or within two years of the purchase or new construction
of the replacement dwelling.
   (3) At the time of the sale of the original property, the claimant
or the claimant's spouse who resides with the claimant is at least
55 years of age, or is severely and permanently disabled.
   (4) At the time of claiming the property tax relief provided by
subdivision (a), the claimant is an owner of a replacement dwelling
and occupies it as his or her principal place of residence and, as a
result thereof, the property is currently eligible for the homeowner'
s exemption or would be eligible for the exemption except that the
property is already receiving the exemption because of an exemption
claim filed by the previous owner.
   (5) The original property of the claimant is sold by him or her
within two years of the purchase or new construction of the
replacement dwelling.  For purposes of this paragraph, the purchase
or new construction of the replacement dwelling includes the purchase
of that portion of land on which the replacement building,
structure, or other shelter constituting a place of abode of the
claimant will be situated and that, pursuant to paragraph (3) of
subdivision (g), constitutes a part of the replacement dwelling.
   (6) The replacement dwelling, including that portion of land on
which it is situated that is specified in paragraph (5), is located
entirely within the same county as the claimant's original property.

   (7) The claimant has not previously been granted, as a claimant,
the property tax relief provided by this section, except that this
paragraph shall not apply to any person who becomes severely and
permanently disabled subsequent to being granted, as a claimant, the
property tax relief provided by this section for any person over the
age of 55 years.  In order to prevent duplication of claims under
this section within this state, county assessors shall report
quarterly to the State Board of Equalization that information from
claims filed in accordance with subdivision (f) and from county
records as is specified by the board necessary to identify fully all
claims under this section allowed by assessors and all claimants who
have thereby received relief.  The board may specify that the
information include all or a part of the names and social security
numbers of claimants and their spouses and the identity and location
of the replacement dwelling to which the claim applies.  The
information may be required in the form of data processing media or
other media and in a format that is compatible with the recordkeeping
processes of the counties and the auditing procedures of the state.

   (c) The property tax relief provided by this section shall be
available if the original property or the replacement dwelling, or
both, of the claimant, includes, but is not limited to, either of the
following:
   (1) A unit or lot within a cooperative housing corporation, a
community apartment project, a condominium project, or a planned unit
development.  If the unit or lot constitutes the original property
of the claimant, the assessor shall transfer to the claimant's
replacement dwelling only the base year value of the claimant's unit
or lot and his or her share in any common area reserved as an
appurtenance of that unit or lot.  If the unit or lot constitutes the
replacement dwelling of the claimant, the assessor shall transfer
the base year value of the claimant's original property only to the
unit or lot of the claimant and any share of the claimant in any
common area reserved as an appurtenance of that unit or lot.
   (2) A mobilehome or a mobilehome and any land owned by the
claimant on which the mobilehome is situated.  If the mobilehome or
the mobilehome and the land on which it is situated constitutes the
claimant's original property, the assessor shall transfer to the
claimant's replacement dwelling either the base year value of the
mobilehome or the base year value of the mobilehome and the land on
which it is situated, as appropriate.  No transfer of base year value
shall be made by the assessor of that portion of land that does not
constitute a part of the original property, as provided in paragraph
(4) of subdivision (g).  If the mobilehome or the mobilehome and the
land on which it is situated constitutes the claimant's replacement
dwelling, the assessor shall transfer the base year value of the
claimant's original property either to the mobilehome or the
mobilehome and the land on which it is situated, as appropriate.  No
transfer of base year value shall be made by the assessor to that
portion of land that does not constitute a part of the replacement
dwelling, as provided in paragraph (3) of subdivision (g).
   This subdivision shall be subject to the limitations specified in
subdivision (d).
   (d) The property tax relief provided by this section shall be
available to a claimant who is the coowner of original property, as a
joint tenant, a tenant in common, or a community property owner,
subject to the following limitations:
   (1) If a single replacement dwelling is purchased or newly
constructed by all of the coowners and each coowner retains an
interest in the replacement dwelling, the claimant shall be eligible
under this section whether or not any or all of the remaining
coowners would otherwise be eligible claimants.
   (2) If two or more replacement dwellings are separately purchased
or newly constructed by two or more coowners and more than one
coowner would otherwise be an eligible claimant, only one coowner
shall be eligible under this section.  These coowners shall determine
by mutual agreement which one of them shall be deemed eligible.
   (3) If two or more replacement dwellings are separately purchased
or newly constructed by two coowners who held the original property
as community property, only the coowner who has attained the age of
55 years, or is severely and permanently disabled, shall be eligible
under this section.  If both spouses are over 55 years of age, they
shall determine by mutual agreement which one of them is eligible.
   In the case of coowners whose original property is a multiunit
dwelling, the limitations imposed by paragraphs (2) and (3) shall
only apply to coowners who occupied the same dwelling unit within the
original property at the time specified in paragraph (2) of
subdivision (b).
   (e) Upon the sale of original property, the assessor shall
determine a new base year value for that property in accordance with
subdivision (a) of Section 2 of Article XIIIA of the California
Constitution and Section 110.1, whether or not a replacement dwelling
is subsequently purchased or newly constructed by the former owner
or owners of the original property.
   This section shall not apply unless the transfer of the original
property is a change in ownership that either (1) subjects that
property to reappraisal at its current fair market value in
accordance with Section 110.1 or 5803 or (2) results in a base year
value determined in accordance with this section, Section 69, or
Section 69.3 because the property qualifies under this section,
Section 69, or Section 69.3 as a replacement dwelling or property.
   (f) A claimant shall not be eligible for the property tax relief
provided by this section unless the claimant provides to the
assessor, on a form that the assessor shall make available upon
request, the following information:
   (1) The name and social security number of each claimant and of
any spouse of the claimant who was a record owner of the original
property at the time of its sale or is a record owner of the
replacement dwelling.
   (2) Proof that the claimant or the claimant's spouse who resided
on the original property with the claimant was, at the time of its
sale, at least 55 years of age, or severely and permanently disabled.
  Proof of severe and permanent disability shall be considered a
certification, signed by a licensed physician and surgeon of
appropriate specialty, attesting to the claimant's severely and
permanently disabled condition.  In the absence of available proof
that a person is over 55 years of age, the claimant shall certify
under penalty of perjury that the age requirement is met.  In the
case of a severely and permanently disabled claimant either of the
following shall be submitted:
   (A) A certification, signed by a licensed physician or surgeon of
appropriate specialty that identifies specific reasons why the
disability necessitates a move to the replacement dwelling and the
disability-related requirements, including any locational
requirements, of a replacement dwelling.  The claimant shall
substantiate that the replacement dwelling meets disability-related
requirements so identified and that the primary reason for the move
to the replacement dwelling is to satisfy those requirements.  If the
claimant, or the claimant's spouse or guardian, so declares under
penalty of perjury, it shall be rebuttably presumed that the primary
purpose of the move to the replacement dwelling is to satisfy
identified disability-related requirements.
   (B) The claimant's substantiation that the primary purpose of the
move to the replacement dwelling is to alleviate financial burdens
caused by the disability.  If the claimant, or the claimant's spouse
or guardian, so declares under penalty of perjury, it shall be
rebuttably presumed that the primary purpose of the move is to
alleviate the financial burdens caused by the disability.
   (3) The address and, if known, the assessor's parcel number of the
original property.
   (4) The date of the claimant's sale of the original property and
the date of the claimant's purchase or new construction of a
replacement dwelling.
   (5) A statement by the claimant that he or she occupied the
replacement dwelling as his or her principal place of residence on
the date of the filing of his or her claim.
   The State Board of Equalization shall design the form for claiming
eligibility.
   Any claim under this section shall be filed within three years of
the date the replacement dwelling was purchased or the new
construction of the replacement dwelling was completed subject to
subdivision (k).
   (g) For purposes of this section:
   (1) "Person over the age of 55 years" means any person or the
spouse of any person who has attained the age of 55 years or older at
the time of the sale of original property.
   (2) "Base year value of the original property" means its base year
value, as determined in accordance with Section 110.1, with the
adjustments permitted by subdivision (b) of Section 2 of Article
XIIIA of the California Constitution and subdivision (f) of Section
110.1, determined as of the date immediately prior to the date that
the original property is sold by the claimant.
   If the replacement dwelling is purchased or newly constructed
after the transfer of the original property, "base year value of the
original property" also includes any inflation factor adjustments
permitted by subdivision (f) of Section 110.1 for the period
subsequent to the sale of the original property.  The base year or
years used to compute the "base year value of the original property"
shall be deemed to be the base year or years of any property to which
that base year value is transferred pursuant to this section.
   (3) "Replacement dwelling" means a building, structure, or other
shelter constituting a place of abode, whether real property or
personal property, that is owned and occupied by a claimant as his or
her principal place of residence, and any land owned by the claimant
on which the building, structure, or other shelter is situated.  For
purposes of this paragraph, land constituting a part of a
replacement dwelling includes only that area of reasonable size that
is used as a site for a residence, and "land owned by the claimant"
includes land for which the claimant either holds a leasehold
interest described in subdivision (c) of Section 61 or a land
purchase contract.  Each unit of a multiunit dwelling shall be
considered a separate replacement dwelling.  For purposes of this
paragraph, "area of reasonable size that is used as a site for a
residence" includes all land if any nonresidential uses of the
property are only incidental to the use of the property as a
residential site.
   (4) "Original property" means a building, structure, or other
shelter constituting a place of abode, whether real property or
personal property, that is owned and occupied by a claimant as his or
her principal place of residence, and any land owned by the claimant
on which the building, structure, or other shelter is situated.  For
purposes of this paragraph, land constituting a part of original
property includes only that area of reasonable size that is used as a
site for a residence, and "land owned by the claimant" includes land
for which the claimant either holds a leasehold interest described
in subdivision (c) of Section 61 or a land purchase contract.  Each
unit of a multiunit dwelling shall be considered a separate original
property.  For purposes of this paragraph, "area of reasonable size
that is used as a site for a residence" includes all land if any
nonresidential uses of the property are only incidental to the use of
the property as a residential site.
   (5) "Equal or lesser value" means that the amount of the full cash
value of a replacement dwelling does not exceed one of the
following:
   (A) One hundred percent of the amount of the full cash value of
the original property if the replacement dwelling is purchased or
newly constructed prior to the date of the sale of the original
property.
   (B) One hundred and five percent of the amount of the full cash
value of the original property if the replacement dwelling is
purchased or newly constructed within the first year following the
date of the sale of the original property.
   (C) One hundred and ten percent of the amount of the full cash
value of the original property if the replacement dwelling is
purchased or newly constructed within the second year following the
date of the sale of the original property.
   For the purposes of this paragraph, except as otherwise provided
in paragraph (4) of subdivision (h), if the replacement dwelling is,
in part, purchased and, in part, newly constructed, the date the
"replacement dwelling is purchased or newly constructed" is the date
of purchase or the date of completion of construction, whichever is
later.
   (6) "Full cash value of the replacement dwelling" means its full
cash value, determined in accordance with Section 110.1, as of the
date on which it was purchased or new construction was completed, and
after the purchase or the completion of new construction.
   (7) "Full cash value of the original property" means its new base
year value, determined in accordance with subdivision (e), without
the application of subdivision (h) of Section 2 of Article XIIIA of
the California Constitution, plus the adjustments permitted by
subdivision (b) of Section 2 of Article XIIIA and subdivision (f) of
Section 110.1 for the period from the date of its sale by the
claimant to the date on which the replacement property was purchased
or new construction was completed.
   (8) "Sale" means any change in ownership of the original property
for consideration.
   (9) "Claimant" means any person claiming the property tax relief
provided by this section.  If a spouse of that person is a record
owner of the replacement dwelling, the spouse is also a claimant for
purposes of determining whether in any future claim filed by the
spouse under this section the condition of eligibility specified in
paragraph (7) of subdivision (b) has been met.
   (10) "Property that is eligible for the homeowner's exemption"
includes property that is the principal place of residence of its
owner and is entitled to exemption pursuant to Section 205.5.
   (11) "Person" means any individual, but does not include any firm,
partnership, association, corporation, company, or other legal
entity or organization of any kind.
   (12) "Severely and permanently disabled" means any person
described in subdivision (b) of Section 74.3.
   (h) (1) Upon the timely filing of a claim, the assessor shall
adjust the new base year value of the replacement dwelling in
conformity with this section.  This adjustment shall be made as of
the latest of the following dates:
   (A) The date the original property is sold.
   (B) The date the replacement dwelling is purchased.
   (C) The date the new construction of the replacement dwelling is
completed.
   (2) Any taxes that were levied on the replacement dwelling prior
to the filing of the claim on the basis of the replacement dwelling's
new base year value, and any allowable annual adjustments thereto,
shall be canceled or refunded to the claimant to the extent that the
taxes exceed the amount that would be due when determined on the
basis of the adjusted new base year value.
   (3) Notwithstanding Section 75.10, Chapter 3.5 (commencing with
Section 75) shall be utilized for purposes of implementing this
subdivision, including adjustments of the new base year value of
replacement dwellings acquired prior to the sale of the original
property.
   (4) In the case where a claim under this section has been timely
filed and granted, and new construction is performed upon the
replacement dwelling subsequent to the transfer of base year value,
the property tax relief provided by this section also shall apply to
the replacement dwelling, as improved, and thus there shall be no
reassessment upon completion of the new construction if both of the
following conditions are met:
   (A) The new construction is completed within two years of the date
of the sale of the original property and the owner notifies the
assessor in writing of completion of the new construction within 30
days after completion.
   (B) The fair market value of the new construction on the date of
completion, plus the full cash value of the replacement dwelling on
the date of acquisition, is not more than the full cash value of the
original property as determined pursuant to paragraph (7) of
subdivision (g) for purposes of granting the original claim.
   (i) Any claimant may rescind a claim for the property tax relief
provided by this section and shall not be considered to have received
that relief for purposes of paragraph (7) of subdivision (b), and
the assessor shall grant the rescission, if a written notice of
rescission is delivered to the office of the assessor as follows:
   (1) A written notice of rescission signed by the original filing
claimant or claimants is delivered to the office of the assessor in
which the original claim was filed.
   (2) (A) Except as otherwise provided in this paragraph, the notice
of rescission is delivered to the office of the assessor before the
date that the county first issues, as a result of relief granted
under this section, a refund check for property taxes imposed upon
the replacement dwelling.  If granting relief will not result in a
refund of property taxes, then the notice shall be delivered before
payment is first made of any property taxes, or any portion thereof,
imposed upon the replacement dwelling consistent with relief granted
under this section.  If payment of the taxes is not made, then notice
shall be delivered before the first date that those property taxes,
or any portion thereof, imposed upon the replacement dwelling,
consistent with relief granted under this section, are delinquent.
   (B) Notwithstanding any other provision in this division, any time
the notice of rescission is delivered to the office of the assessor
within six years after relief was granted, provided that the
replacement property has been vacated as the claimant's principal
place of residence within 90 days after the original claim was filed,
regardless of whether the property continues to receive the
homeowners' exemption.  If the rescission increases the base year
value of a property, or the homeowners' exemption has been
incorrectly allowed, appropriate escape assessments or supplemental
assessments, including interest as provided in Section 506, shall be
imposed.  The limitations periods for any escape assessments or
supplemental assessments shall not commence until July 1 of the
assessment year in which the notice of rescission is delivered to the
office of the assessor.
   (3) The notice is accompanied by the payment of a fee as the
assessor may require, provided that the fee shall not exceed an
amount reasonably related to the estimated cost of processing a
rescission claim, including both direct costs and developmental and
indirect costs, such as costs for overhead, personnel, supplies,
materials, office space, and computers.
   (j) (1) With respect to the transfer of base year value of
original properties to replacement dwellings located in the same
county, this section, except as provided in paragraph (3) or (4),
shall apply to any replacement dwelling that is purchased or newly
constructed on or after November 6, 1986.
   (2) With respect to the transfer of base year value of original
properties to replacement dwellings located in different counties,
except as provided in paragraph (4), this section shall apply to any
replacement dwelling that is purchased or newly constructed on or
after the date specified in accordance with subparagraph (E) of
paragraph (2) of subdivision (a) in the ordinance of the county in
which the replacement dwelling is located, but shall not apply to any
replacement dwelling which was purchased or newly constructed before
November 9, 1988.
   (3) With respect to the transfer of base year value by a severely
and permanently disabled person, this section shall apply only to
replacement dwellings that are purchased or newly constructed on or
after June 6, 1990.
   (4) The amendments made to subdivision (e) by the act adding this
paragraph shall apply only to replacement dwellings under Section 69
that are acquired or newly constructed on or after October 20, 1991,
and shall apply commencing with the 1991-92 fiscal year.
   (k) (1) In the case in which a county adopts an ordinance pursuant
to paragraph (2) of subdivision (a) that establishes an applicable
date which is more than three years prior to the date of adoption of
the ordinance, those potential claimants who purchased or constructed
replacement dwellings more than three years prior to the date of
adoption of the ordinance and who would, therefore, be precluded from
filing a timely claim, shall be deemed to have timely filed a claim
if the claim is filed within three years after the date that the
ordinance is adopted.  This paragraph shall not be construed as a
waiver of any other requirement of this section.
   (2) This subdivision shall not apply to a claimant who has
transferred his or her replacement dwelling prior to filing a claim.

   (3) The property tax relief provided by this section, but filed
under this subdivision, shall apply prospectively only, commencing
with the lien date of the assessment year in which the claim is
filed.  There shall be no refund or cancellation of taxes prior to
the date that the claim is filed.
  SEC. 2.  No reimbursement is required by this act pursuant to
Section 6 of Article XIIIB of the California Constitution because a
local agency or school district has the authority to levy service
charges, fees, or assessments sufficient to pay for the program or
level                                                    of service
mandated by this act, within the meaning of Section 17556 of the
Government Code.
